Finnfund makes its first investment in Kyrgyzstan with a 10 million US dollar loan to Bailyk Finance, one of Kyrgyzstan’s largest microfinance institutions

Finnfund, the Finnish development financier and impact investor, has signed a 10 million US dollar senior loan facility with Bailyk Finance, marking Finnfund’s first direct investment in Kyrgyzstan. This milestone deepens Finnfund’s work in Central Asia and reinforces its commitment to building resilient and socially oriented financial institutions that drive inclusive economic growth.

The financing will strengthen Bailyk Finance’s on‑lending capacity to microentrepreneurs, smallholder farmers, rural households and women borrowers across the country. The facility is expected to support around 22,500 loans during the investment period.

“Bailyk Finance is a strong, socially oriented institution with deep roots in rural communities. By providing longer‑tenor financing, we are enabling Bailyk Finance to broaden access to credit for micro-entrepreneurs, smallholder farmers, and rural women,” says Kyaw Latt, Investment Manager at Finnfund. “These groups are vital to the country’s economic resilience but remain underserved by the formal financial sector. This partnership also strengthens the diversification of our portfolio and aligns with our commitment to supporting financial institutions that combine strong governance with meaningful development impact,” he adds.

Chinara Moldazhanova, Chief Executive Officer at Bailyk Finance, comments:
“Partnering with Finnfund is a landmark achievement for Bailyk Finance. This 10 million US dollar facility is not just a capital injection; it is a testament to the international investment community’s confidence in our mission. With this funding, we will significantly scale our support for rural entrepreneurs and smallholder farmers, providing them with the stable financial foundation they need to grow and thrive in an evolving economy. This project is important not only for the development of our company, but also for the economy of the Kyrgyz Republic and the well-being of its population.”

Bailyk Finance is a leading microfinance institution with a strong rural and social mission. It is the second largest microfinance institution by clients and branch footprint, and third largest by loan portfolio size, with a clear focus on serving underserved areas. With 60,000+ active clients, 55 branches, and over 700 employees, the institution maintains a strong rural presence and a socially oriented mission.

Gender equality is a cornerstone of Bailyk Finance’s operations: 59% of clients are women, and gender balance is reflected internally with a majority-women workforce and women holding 50% of senior management and 60% of board positions.

Beyond credit provision, Bailyk Finance strengthens financial resilience by offering financial literacy training, extending insurance coverage to 74% of clients, and improving rural healthcare access through the “My Doctor” online platform. The institution is also advancing its environmental commitments through digitalisation, solar energy adoption, and the expansion of its green loan portfolio.

The investment directly supports Finnfund’s mission to expand financial inclusion in underserved markets. In Kyrgyzstan, the majority of low‑income and rural clients lack access to longer‑tenor financing, as local banks primarily offer short‑term funding. The facility will channel capital to where the need is greatest: 77% of Bailyk Finance’s clients live in rural and semi‑urban areas, and 56% of the portfolio is directed to agricultural borrowers which is nearly three times the national microfinance sector average.

More information: Kyaw Latt, Investment Manager, Finnfund kyaw.latt@finnfund.fi, +358 40 631 2941
Media contact: Valpuri Mäkinen, Senior Communications and Marketing Manager, Finnfund, valpuri.makinen@finnfund.fi, tel. +358 50 384 2105